Problem 3
Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.
FAIRCHILD COMPANY |
|||||||||||||||||||||||
2012 |
2011 |
||||||||||||||||||||||
Cash |
$1, 80 1 |
$1,091 |
|||||||||||||||||||||
Receivables |
1,757 |
1,301 |
|||||||||||||||||||||
Inventory |
1,594 |
1,900 |
|||||||||||||||||||||
Plant assets |
1,897 |
1,707 |
|||||||||||||||||||||
Accumulated depreciation |
(1,205 |
) |
(1,170 |
||||||||||||||||||||
Long-term investments (held-to-maturity) |
1,299 |
|
1,462 |
||||||||||||||||||||
$7,143 |
$6,291 |
||||||||||||||||||||||
Accounts payable |
$1,207 |
$796 |
|||||||||||||||||||||
Accrued liabilities |
203 |
245 |
|||||||||||||||||||||
Bonds payable |
1,418 |
1,631 |
|||||||||||||||||||||
Common stock |
1,893 |
1,706 |
|||||||||||||||||||||
Retained earnings |
2,422 |
1,913 |
FAIRCHILD COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Sales
$6,851
Cost of goods sold
4,691
Gross margin
2,160
Selling and administrative expenses
930
Income from operations
1,230
Other revenues and gains
Gain on sale of investments
82
Income before tax
1,312
Income tax expense
531
Net income
$
78
1
Additional information:
During the year, $78 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $272.
Prepare a statement of cash flows using the indirect method.
(If an amount reduces the account balance then enter with negative sign.)
FAIRCHILD COMPANY |
|||||||
$ |
|||||||
Adjustments to reconcile net income to |
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Problem 4
Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.
$1,803 |
$1,095 |
||
1,755 |
1,291 |
||
1,581 |
1,910 |
||
1,708 |
|||
(1,194 |
(1,163 |
||
1,475 |
|||
$7,137 |
$6,316 |
||
$1,205 |
$789 |
||
213 |
235 |
||
1,411 |
1,649 |
||
1,898 |
1,692 |
||
2,410 |
1,951 |
$6,828 |
4,694 |
2,134 |
935 |
1,199 |
80 |
1,279 |
547 |
$732 |
Additional information:
During the year, $78 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $273.
Prepare a statement of cash flows using the direct method.
(If an amount reduces the account balance then enter with negative sign.)
FAIRCHILD COMPANY |
Cash at End of Period
Net Cash Provided by Financing Activities
Issuance of Common Stock for Plant Assets
78
Cash Collections from Customers
Cash Paid for Merchandise
Cash Paid for Selling/Administrative Expenses
Cash Paid for Income Taxes
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Sale of Held-to-Maturity Investments
Purchase of Plant Assets
Net Cash Provided by Investing Activities
Cash Flows from Financing Activities
Issuance of Capital Stock
Retirement of Bonds Payable
Payment of Cash Dividends
Net Cash Provided by Financing Activities
Net Increase in Cash
Cash at Beginning of Period